According to Hollywood lore, Alfred Hitchcock essentially finished his movies before he ever stepped on set to film them. He put so much energy into the planning process—dissecting the script, perfecting the storyboard and plotting every camera angle—that by the time he started filming, the movie already existed in his head. As long as he’d planned properly, if he’d identified the problems and figured out how to manage them, filming was a straightforward matter of executing his vision.
This is a little like the vibe you get when you talk to Jack Stack about the $100 million plan his company, SRC Holdings Corp., is working toward. It’s a splashy number—$100 million—and it grabs your attention. But Stack really gets excited when he talks about why and how the plan came to be. It all started, he says, because SRC spotted a looming problem: a worker shortage, and he’s not just talking about the shortage that’s currently stressing C-suites. He’s talking about something even bigger in 2030.
“The biggest problem with 2030 is baby boomers will be sidelined. We’ll all be out,” he says. New workers from subsequent generations will continue to enter the labor force, but there aren’t enough of them to replace the people who are retiring. So, Stack says: “You’ll have 71 million people sucking down healthcare, social costs, social security. That is very troublesome for us, and we don’t see anything being done about it now.”
As a result, he predicts a labor market with fewer available workers to support economic and societal needs. If you’ve read Stack’s bestselling management book, The Great Game of Business, you might guess that in such conditions, he’d call for diversification, and you’d be right. That’s where the $100 million plan comes in. While SRC has diversified through strategic partnerships in the past, this plan allows for new moves into commercial real estate, along with key expansions of SRC’s core business, manufacturing. Rental income is a good bet, Stack says, even during recessions. People may put off purchasing big-ticket items like cars or boats, but historically, he says they’ve continued to make rent and mortgage payments. With this strategy in mind, a new subsidiary, SRC Realty, is leading the effort to capitalize on existing SRC properties and acquire a few additional ones, all with the goal of creating new revenue streams.